Group items tagged

Japan's struggle to avert a nuclear disaster and prepare for a reconstruction of epic proportions is one more risk for a global economy already grappling with mounting risks. The threats to the fragile recovery were already rising before the devastating earthquake and tsunami brought the world's third-largest industrial economy to its knees. And they span the globe - from conflict and oil disruptions in the Middle East and rising inflation in China and other high-growth emerging economies to continuing debt woes in Europe and persistent weakness in U.S. housing and employment, whose recovery is essential to any sustained U.S. rebound. Adding to the wall of worry, governments have pulled the plug on massive stimulus programs, which played a crucial role in turning around economic fortunes in the wake of the 2008 financial meltdown and ensuing recession. Are these symptoms of an upcoming recession?

New Zealand First leader Winston Peters has railed against partial privatisation, the increase in GST and tax cuts for the wealthy as he tries to galvanise his supporters ahead of this year's election. In a speech to Ashburton Grey Power today, Mr Peters told the audience, "The worldwide recession is not your fault. It was caused by the greedies in the banking and finance industry."

New Zealand may have skirted recession in 2010, with economists predicting positive growth in the final three months, though last month's earthquake in Christchurch could see GDP turn negative again in early 2011. The economy expanded 0.1% in the fourth quarter after unexpectedly shrinking three months earlier.

Japan's nuclear crisis and the devastations caused by last Friday's earthquake and tsunami are unlikely to trigger a global recession as happened in the aftermath of the collapse of the US investment bank Lehman Brothers three years ago, according to leading economists. However, they expressed fears that automobile and electronic industries around the world, especially in Asia, Europe and the US, may face manufacturing delays, if the Japanese production of components remain crippled for a long period. Even though Japan is the world's third largest economy, its share of the global gross domestic product (GDP) is below 5 per cent. Therefore, the consequences for the global economy from the catastrophe will be very minimal

This article discusses how the rise in oil prices will be one of the huge risk factors for another recession. High oil prices would be caused by a diminishing supply of oil. Higher prices of oil would cause inflation and since people would not be payed more, the economy would fall into another recession.

This article warns economists that oil prices might well cause a recession. In just a month's time, oil prices have risen from 85 to 106$ a barrel. This article examines how that price rise might affect the economy.

The article highlights certain industries/producers that succeed during a recession, all related to the idea of negative income elasticities or inferior products. Examples from the article include discount retailers such as Walmart, 'sin industries' e.g. cigarettes, selected services e.g. renovation (people focus on what they have and try to improve it rather than purchasing something new). The article also praises firms that tighten up costs and expand on 'core product' ranges and using 'vast economies of scale' to provide affordable goods to consumers.

The article (interview) exposes the posible reccession that the crisis at the araba world can carry, as everybody knows the oil is one of the main components of production, if it´s prices increase is possible LRAS will decrease or increase it´s prices.

This article discusses why not-for-profit companies are having a hard time meeting their goals for this year. I have seen this impact of the recession on a nonprofit firsthand because I am on the board for the United Way of Central Indiana and we are having trouble meeting our yearly goal.

This article states that Californian households were greatly affected by the Great Recession. 67.5% of Californian households saw their net worth fall, while the overall is 62.5% in the United States. Also, median decline in West was 27%, while national median was approximately 18%.

According the to the Census there were 17.3% less startups in the US since march 2009. This is mostly due to the lack of financing available, if loans arent available small start-ups are unlikely to arise.

This article discusses the correlation between Reality TV and the economy. It discusses whether the resurgence of certain reality tv shows indicate that the economy is coming out of a recession.

This article suggests that the recession on global economy may be over but there is still a high rate of joblessness

America has done a better job keeping GDP up than almost any other developed nation affected by the Great Recession. But it's done a far worse job keeping unemployment down. Why? America has a very weak labor union movement. An underconsumption of labor union movements here engenders market failure. This article discusses this idea in further detail.

People are dropping out of their jobs at a higher rate than ever, even though hiring has bounced back a bit. Unemployment rate is up to 8.9%. The recession has driven younger people out of the job market and back into school. People over 55 are going back to work because their savings were depleted due to the recession. -Michael

USA: this article discusses how, following the most recent recession, the US labor market improved throughout the country, driven by rising retail sales and "solid growth" in manufacturing. "Labor market conditions continued to strengthen modestly, with all Districts reporting some degree of improvement," The article also goes on to discuss labor demand and growing economies.

Updated March 21, 2011 12:27:44 The US dollar strengthened against the Japanese yen on Friday, after Japan and its Group of Seven partners stepped in to help the central bank force down the value of the currency. In a rare move, the powerful G7 agreed to a joint intervention to stabilize foreign exchange markets. A strong yen risks further destabilising Japan's economy

"WHEN disaster strikes, the reaction of many investors is to scoot first and ask questions later." The recent natural disaster in Japan not only caused tsunamis that destroyed the cities, but it also caused ripples of detrimental effects on the world economy. Investors reluctant to put their money on the table due to the negative trends due to geopolitical and economic reasons around the world further contribute to the cycle of recession.

On the world stage, the debate over Keynesianism played out between the big powers during the world financial recession. Whilst the conservative British and German governments have been significantly reducing their government budgets, President Barack Obama has been priming the Keynesian pump by advocating much government "stimulus" spending. Obama's predecessor, George W. Bush, also spent federal cash in attempts to revive the economy...

This article talks about the recession going out in Spain and, more precisely, about the new challenges that the government is facing in order to reduce deficit and public debt, which by the way, has been downgraded by Moody's last week.